Mercedes-Benz faces potential US ban under new Senate bill

American luxury car buyers may need to cross one of the world’s most famous nameplates off their shopping list as Mercedes-Benz faces a potential ban in the United States from a bill designed to target Chinese-owned automakers.

Big picture view:

The Senate Commerce Committee signed off on the measure last week. The bill calls for a prohibition on selling vehicles in the U.S. by companies in which Chinese entities have a 15% or greater stake, Reuters reported, noting that Mercedes-Benz has a nearly 20% passive Chinese investment. 

What they're saying:

Sen. Bernie Moreno, the Ohio Republican who sponsored the bipartisan bill alongside Michigan Democrat Sen. Elissa Slotkin, said the bill would be "preventing an absolute, total, and complete destruction of our industrial base." He did note that Mercedes-Benz would have until 2030 to comply and could also try to obtain a waiver from the restrictions.

The other side:

Moreno’s fellow Republican Sen. Ted Cruz noted how the German automaker could be affected by the restrictions on Chinese entities and argued that the bill would require changes. The Texas senator, who also chairs the Commerce Committee, accused General Motors of pushing that provision in a bid to boost its own Cadillac brand, according to the Reuters report.

GM responded by saying that the bill is not meant to target certain automakers, the Reuters report added. The Detroit giant had previously said that it "supports policies that protect and strengthen American manufacturing and the global competitiveness of U.S. automakers." 

The backstory:

Just last month, the Trump administration banned Polestar from selling vehicles in the U.S., starting in the 2027 model year, because the automaker is majority-owned by the Chinese company Geely Holding. Its sister brand, and one of the founders of that Polestar, Volvo Cars said in May that it would still be allowed to sell cars in the U.S.

 

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